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Industry benchmarks chapter |
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Industry benchmarks Detailed tables and descriptions |
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Taxation statistics – whole document |
In recent
years, the ATO has worked with community groups, industry representatives and
tax practitioners on a range of activities. These activities are aimed at
maintaining the integrity of the tax system, encouraging and improving record
keeping practices among businesses, and reducing compliance costs for
businesses. Providing industry benchmarks in the form of financial ratios and
activity statement ratios is one such activity.
In providing benchmarks, the
ATO aims to have a more direct impact on taxpayer behaviour before tax returns
are prepared and lodged.
The benchmarks help tax
advisers identify averages for groups of activities and, therefore, businesses
that vary significantly from those averages. Tax advisers can use this
information to determine the reasons for any variation and identify action that
should be taken to correct problems and improve business practices - in
particular, those related to record keeping.
The business community and
business owners generally use benchmarks to compare the performance of their
business with industry averages. The business community may also use these
ratios when evaluating job tenders. The gross profit and net profit ratios of a
business compared to the industry average may be one factor taken into account
in deciding whether a particular tender is successful.
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